In the array of criminal risks, regulatory expectations and program pitfalls compliance officers have to juggle when creating, adjusting and running financial crime compliance programs, one term rising in recent exam cycles is becoming particularly troublesome: “negative news.”
The goal of this white paper is to help financial crime compliance professionals in several areas related to negative news (also known as adverse media) so they can better balance AML resources for improved results, satisfy ever more critical examiners, create less work for independent auditors and, the pinnacle of any AML program, stop and report on risky parties attempting to move illicit funds through their institution. This white paper will answer several key questions:
What does negative news really mean in an AML program context?
Where is negative news implied in the prongs and requirements of an AML program?
What are the pros and cons of manual negative news searching versus third-party vendor offerings?
If you choose manual negative news screening, what are your options?
If you choose vendor negative news screening, what questions should I ask and what answers should I be looking for?
When is the best time to screen for negative news and are there times I should do that for certain individuals, classes of customers or jurisdictions?
What do regulators expect when it comes to screening for negative news?
What guidance is available?
What do I do if I get a negative news hit on a client or corporate?
Can a regulator bring an enforcement action or penalty just for missing a negative news item?